Iconix Brand Group sells Starter China stores
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American brand management company Iconix Brand Group has sold the Starter China business for US$16 million to an unnamed local investor.
The Starter divestment is the second Chinese transaction by the US company this year following an agreement reached in April to sell the Umbro China business for $62.5 million to HK Qiaodan Investment Limited. Both deals will be settled by September 15.
Iconix’s portfolio of international brands includes denim brand Lee Cooper, Mossimo, Mudd Jeans, Ed Hardy and Jay-Z’s streetwear label Rocawear. It also owns footwear brands including Ecko Unltd and ranges from Madonna.
The new owners of Starter in China will assume distribution rights for Mainland China, Hong Kong, Taiwan and Macau.
Funds raised from the sales are being applied to reduce Iconix’ debt and otherwise for general corporate purposes.
Questions & Answers
Q.Who bought the Starter China business from Iconix Brand Group?
Who bought the Starter China business from Iconix Brand Group?
The Starter China business was sold for US$16 million to an unnamed local investor. The article does not specify the identity of the new owner beyond this description.
Q.What other Chinese businesses has Iconix sold this year?
What other Chinese businesses has Iconix sold this year?
Iconix also sold the Umbro China business for $62.5 million to HK Qiaodan Investment Limited earlier this year. This was the second Chinese transaction completed by the company.
Q.What is the total value of Iconix's Chinese business sales this year?
What is the total value of Iconix's Chinese business sales this year?
The Starter China sale was US$16 million and the Umbro China sale was $62.5 million. This brings the total value of these two divestments to US$78.5 million.
Q.How will Iconix Brand Group use the money from these sales?
How will Iconix Brand Group use the money from these sales?
The funds raised from these transactions are primarily being used to reduce Iconix's debt. Any remaining funds will be allocated for general corporate purposes.
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